CBP Announces EAPA Investigation, Interim Measures on CIMC Intermodal Equipment

CBP announced an Enforce and Protect Act investigation on whether CIMC Intermodal Equipment (CIE) evaded antidumping and countervailing duty orders on certain chassis and subassemblies from China, and imposed interim measures, according to a ruling released Aug. 9.

The investigation follows a Coalition of American Chassis Manufacturers allegation that CIE transshipped chassis through Thailand. CACM alleged CIE is a U.S.-based subsidiary of CIMC Vehicles, which is itself a subsidiary of China International Marine Containers (CIMC Group), a large Chinese company partly owned by the Chinese government. Two Chinese state-owned enterprises, including one of the country's largest -- the China Merchants Group -- are CIMC Group's largest shareholders.

CACM said CIE previously imported Chinese-origin chassis and subassemblies into the U.S. but largely stopped and instead started importing from its Thai affiliate, CIMC Thailand, which did not manufacture or export chassis and subassemblies prior to the issuance of the AD and CVD orders.

CIE began importing chassis and subassemblies from CIMC Thailand in August 2021, with 17 entries in 2021 and 102 entries in 2022. CACM also alleged that CIMC entities in China were identified as the shipper for almost 45 million kgs of merchandise with CIE as the consignee, while CIMC Thailand had zero imports to CIE. CACM said imports from CIMC’s entities in China dropped 99% in 2021 and then dropped an additional 73% in 2022. In contrast, CIMC Thailand imports to CIE jumped from zero in 2020 to nearly 30 million kgs in 2022.

CACM argued there was minimal manufacturing activity at CIMC Thailand and its facility could not have manufactured the volumes of merchandise entering the U.S. while CIMC’s Chinese affiliates continued to have "substantial manufacturing activity." CACM conducted its own site visits of CIMC Thailand and claimed the number of personnel was substantially less than needed to produce the volume of chassis and subassemblies that CIMC claimed to have produced at the site.

Beginning in May, CBP issued information requests to CIE, but the importer failed to comply with the requests for raw material details and did not provide reasons for that failure. The importer also failed to provide CBP with certificates of origin, work orders, shipment information, delivery or customs clearance information. Because the responses were incomplete and contained "multiple discrepancies," CBP said it was unable to determine whether CIMC Thailand could produce chassis and subassemblies or determine the country of origin of items imported by CIE.

CBP said it will suspend the liquidation of each unliquidated entry entered on or after April 24, 2023, the date of the initiation of the investigation, extend the period for liquidating each unliquidated entry of such covered merchandise that entered before that date, and may take additional measures as the commissioner determines necessary, including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise. The agency will also require live entry and reject any noncompliant entry summaries, as well as require the refiling of entries that are within the entry summary rejection period. It also will evaluate CIE’s continuous bonds to determine sufficiency.